Procurement Methods

Procurement Methods

CIHA use several methods of procurement.

Micro-purchases

Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold. Micro-purchases may be awarded by obtaining one quote if the CIHA considers the price to be reasonable. Departments make direct purchases under the micro-purchase method.

Request for Quote (RFQ)

Small purchase procedures are those relatively simple and less formal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold, currently $150,000. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources by the Procurement Department. A firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose quote, conforming with all the material terms and conditions of the RFQ, is the lowest in price.

Invitation to Bid (ITB)

Bids are publicly solicited by the Procurement Department and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the ITB, is the lowest in price.

Request for Proposal (RFP)

RFPs are used when CIHA wants to select a contractor on the basis of qualifications and cost. The Procurement Department will solicit proposals, and an evaluation committee will independently evaluate the merit of proposals received in accordance with the evaluation factors defined in the RFP. The evaluation process is based on a 100 point scale. The proposal that accrues the highest point total shall be recommended for award subject to the best interests of CIHA. Categories have been identified for the evaluation process. Each category shall receive a point value within the specified range based on how well the proposal meets or exceeds CIHA’s requirements. A table provided in the RFP lists the maximum points associated with each category.